Results of 6-Month Study by USAT Show Marketers
Who Promote Apple Pay See Increase in Mobile Payments and Overall
Spend at Point-of-Sale
USA Technologies, Inc. (NASDAQ:USAT) (“USAT”), a payment
technology provider of cashless and mobile transactions in
self-serve retail, today announced the results of a six-month study
testing targeted point-of-sale advertising of Apple Pay, which is
transforming mobile payments with an easy, secure and private way
to pay that’s fast and convenient. Based on the results showing a
steady upward trajectory in mobile payment usage, USAT concluded
that smartphone users shown digital advertising at
point-of-sale through the ePort Interactive platform are more apt
to pull out their iPhone to make a purchase, and even spend
more.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20161121005359/en/
Displays and call-to-action messages can
act as an electronic gateway for consumers to learn about and use
the mobile wallets already installed on their phones (Photo:
Business Wire)
Findings by USAT after 24 weeks show targeted, digital
advertising on USAT’s ePort Interactive platform that highlight
Apple Pay availability at point-of-sale resulted in a:
- 36.5% increase in overall sales
- 44.6% increase in total
transactions
- 6% increase in total contactless
average ticket; 18% at week 20*
- 55.5% increase in revenue through
contactless purchases, including Apple Pay; 121% at week 20*
- 135.2% increase in overall mobile
payment usage
*Weeks 21-24 historically represent a seasonal dip in visits to
vending machines overall.
The study’s results suggest targeted advertising can help boost
mobile wallet use. The study found that the number of NFC or
contactless mobile wallet transactions – triggered when consumers
hold their smartphones up to the screens – increased by an
astounding 135.2 percent on machines with targeted messaging.
USAT initially unveiled the first four weeks of data at the
National Automatic Merchandising Association’s (NAMA) OneShow in
Chicago in April 2016, followed by a press release in
June of this year. With the release of its latest study, the
company has now updated its findings to include six months of data
and tracking, bolstering and extending the initial results.
“Based on our study, we believe that when businesses and
operators present consumers with the option to pay for items with
Apple Pay, the number of mobile payments made and the amount spent,
increases,” said Maeve McKenna Duska, senior vice president of
marketing and sales, USA Technologies. “The data from
this study suggest that call-to-action messages underscoring
speed, convenience and security of Apple Pay can act as an
electronic gateway for consumers to learn about and use the mobile
wallets already installed on their phones. Further, unattended
markets are continuing to drive Apple Pay usage as it offers
consumers a simple and convenient way to pay without cash or a
credit card.”
The results of the study are clear: when consumers are asked to
pay with their phones, they do. But they’re also more likely to
make a purchase that they otherwise might not, regardless of how
they ultimately pay for their items.
Furthermore, the numbers provide evidence that negative
seasonality trends may be tempered, and even reversed, by telling
consumers they have an option to pay with Apple Pay.
About the Study:
The study measured the impact of targeted digital advertising
screens on consumers’ use of mobile wallets – primarily Apple Pay –
across 35 vending machines located in New York and Louisiana over a
six-month period from March to August, 2016. Machines were
outfitted with USAT’s proprietary ePort® Interactive displays,
which process magnetic stripe credit and debit cards, as well as
mobile wallet payments. The displays were programmed with an
image of an iPhone and a call for consumers to “Pay with your
favorite card using Apple Pay.”
The 130 devices in the control group, on the other hand, simply
displayed “Ready – Swipe or Tap Now” above the Apple Pay and other
contactless payment services logos.
While the initial, four-week results showed both sales and
average contactless ticket increases, the extended results provide
insight not only into how consumers interact with vending machines
displaying interactive messaging, but into broader consumer
adoption of consumer wallets. The full results of the study,
detailed in a white paper titled “Targeted Advertising Leads to
Surge in Contactless Sales,” are available upon request.
Useful Links:
USA
Technologies: https://usatech.com/Twitter: https://twitter.com/usa_techYouTube: https://www.youtube.com/user/USATechnologiesResource
Center: https://usatech.com/resource-center/the-benefits
Sales and Partnership Inquiries:
Please contact USA Technologies, Inc. at +1 800.633.0340
or sales@usatech.com.
USA Technologies:
USA Technologies, Inc. is a premier payment technology service
provider of integrated cashless and mobile transactions in the
self-service retail market. The company also provides a broad line
of cashless acceptance technologies including its NFC-ready ePort®
G-series, ePort Mobile™ for customers on the go, ePort®
Interactive, and QuickConnect, an API Web service for developers.
USA Technologies has 78 United States and foreign patents in
force; and has agreements with Verizon, Visa, Chase Paymentech and
customers such as Compass, AMI Entertainment and others. For more
information, please visit the website at www.usatech.com.
Forward-looking Statements:
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: All statements other than statements of
historical fact included in this release, including without
limitation the business strategy and the plans and objectives of
USAT's management for future operations, are forward-looking
statements. When used in this release, words such as "anticipate",
"believe", "estimate", "expect", "intend", and
similar expressions, as they relate to USAT or its management,
identify forward-looking statements. Such forward-looking
statements are based on the beliefs of USAT's management, as well
as assumptions made by and information currently available to
USAT's management. Actual results could differ materially from
those contemplated by the forward-looking statements as a result of
certain factors, including but not limited to, the ability of
USAT to predict future market conditions and consumer
behavior; the possibility that all of the expected benefits
and efficiencies from digital advertising highlighting Apple Pay
and other contactless payment services logos, including increases
in overall transactions, revenue and/or average ticket, will not be
realized by all vending operators and on all vending machines or
within the expected time period; and the ability of USAT to
operate without infringing or violating the intellectual property
rights of others. Readers are cautioned not to place undue reliance
on these forward-looking statements. Any forward-looking statement
made by us in this release speaks only as of the date of this
release. Unless required by law, USAT does not undertake to
release publicly any revisions to these forward-looking statements
to reflect future events or circumstances or to reflect the
occurrence of unanticipated events.
- G-USAT -
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version on businesswire.com: http://www.businesswire.com/news/home/20161121005359/en/
Media Contacts for USA Technologies:ANW NetworksAlicia V.
Nieva-Woodgate, +1 415.515.0866alicia@anwnetworks.comorMelissa
Hourigan, +1 720.988.3856melissa@anwnetworks.comorInvestor
Relations:Blueshirt GroupMichael Bishop +1
415.217.4968mike@blueshirtgroup.com
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